18.104.22.168 Income Test - FTB Part B
FTB Part B income tests
The following table outlines the income tests that apply to different individual's circumstances.
|If the Individual is…||Then…|
|a single parent,||they are eligible for the maximum rate of FTB Part B if their income is $100,000 per annum or less.|
|the higher income earner in a couple,||there is a $100,000 per annum income test.|
|the lower income earner in the couple,
Explanation: It does not matter if the lower income earner is not the primary carer of the children.
Example: Damien and Genevieve receive FTB Part B. Damien is self-employed and earns $5,500 and Genevieve earns $15,500 per year. Genevieve works part-time and is the primary carer of the children. FTB Part B is calculated on Damien's income of $5,500 a year as he is the lower income earner even though Genevieve is the primary carer.
|if their partner's income is equal to or lower than the income limit of $100,000 per annum, an income test then applies to the lower earner's income to determine the rate of FTB Part B. Their FTB Part B is reduced by 20% of the income excess if their ATI (1.1.A.20) is more than their income free area (1.1.I.40).
Explanation: This reduction is deducted from the maximum rate. This amount is now the individual's FTB Part B rate.
Special arrangements may apply to lower income earners in a couple returning to work for the first time after the birth of a child, or when an eligible child enters their care.
For information on how FTB Part A and FTB Part B are exempt from the income test for ATI for periods during the relevant income year (1.1.R.23) when the individual and/or their partner receive income support payments refer to 22.214.171.124.
Act reference: FA(Admin)Act section 20 Determination of rate may be based on estimate, indexed estimate or indexed actual income, section 20A Indexed estimates, section 20B Indexed actual incomes
Policy reference: FA Guide 1.1.I.85 Indexed income - actual or estimate (FTB), 126.96.36.199 FTB Part B Return to Work, 188.8.131.52 Income Test Exemptions for Individuals in Receipt of Income Support, 184.108.40.206 Current FTB rates & income test amounts